The devaluation of the Lebanese pound (LBP) against the US dollar was expected to decrease the size of Lebanon’s import bill. However, in reality, the imports actually increased by $5.41 billion in 2022 compared to 2021, reaching a total of $19.05 billion. This raises questions about how a struggling country, in a financial crisis and a shortage of hard currency managed to import as much.

LIMS explained that there is an excess in LBP and not a lack of hard currency since Lebanon receives dollars from transfers, tourist spending, and the Lebanese central bank’s reduced reserves. LIMS stressed that the increase in imports for 2022 is due to the expected increase in customs duties that was announced and the change in the customs dollar rate. Importers therefore secured their needs for years ahead. The central bank’s subsidies for certain commodities such as medicine, wheat, and fuel for EDL contribute to the continued imports. LIMS suggested reducing the tariff rates in parallel to the customs exchange rate hike to protect existing businesses from illicit competition.

LIMS Media Interviews:

• Despite The Crisis, Lebanon’s Import Volume Jumps $5 Billion, January 9, 2023: Sky News Arabia, Article AR
• Crisis-Ridden Lebanese Import $17 Billion, January 3, 2023: Safa, Article AR
• Roundup: Customs Rate Hike Without Countermeasures May Have Huge Impact For Crisis-Hit Lebanon, Say Experts, 16 January, 2023: Xinhua, Article EN
• Sayrafa And Its Black Hole: Commodity Prices On Market Rate, January 11, 2023: Al Modon, Article AR